So you're interested in hiring a virtual bookkeeping company, but you're not sure how much making the switch will cost. When considering virtual bookkeeping, there are actually two costs to consider: the virtual bookkeeper and the accounting software. If you don't have online accounting software, you may need to acquire it alongside the virtual bookkeeping services. Let's take a deeper look.
How Much Does Virtual Bookkeeping Cost?
Virtual bookkeeping varies, just as all services do. Sometimes you may pay a flat rate per month as a retainer to your virtual bookkeeping service. Other times, you may be billed more by your virtual bookkeeper for additional work that they needed to do. This varies from client to client, but that is also the beauty of switching to a virtual bookkeeping service provider - services are tailored to the needs of the business.
Many virtual bookkeeping services have a tiered service. You get more from your virtual bookkeeper the more you pay.
What is assured is that because there's a spectrum of cost, you can find virtual bookkeeping that's the right price for your business. Because virtual bookkeeping services vary, you only pay for the bookkeeping services you need. However, doing the proper research into the service provider you are considering is very important. A company like AccountingDepartment.com is 100% US-Based and you have your own dedicated Specialist assigned to your account. With that, you know exactly what you are getting from day 1.
Virtual bookkeeping will also always be more affordable than in-person bookkeeping services. No longer having a need for an in-person bookkeeper reduces many costs and opens up more options to reinvest profits back into the business.
How Much is Accounting Software?
The proprietary software used by virtual bookkeepers may not be the same that the business owner already uses. If the business owner uses an on-premise system, the bookkeeping service may need to switch them to an online or cloud-based system like QuickBooks or NetSuite. It opens up the business to more efficiencies and accuracies. It can also be expensive to purchase and maintain your own accounting software between implementation, training, and keeping the software up to date.
Cloud bookkeeping software is more accessible for the purposes of a virtual bookkeeper.
A virtual bookkeeping service will be able to log into a web or cloud accounting software solution from anywhere. The bookkeeping service will thus be able to provide all the services that an in-person bookkeeping service could and more.
Virtual bookkeeping services can also work with on-premise solutions, but a virtual bookkeeper will have a harder time importing/exporting data from bank accounts and financial transactions.
That being said, online accounting services like QuickBooks Online are one of the most affordable suites for a small business. A small business may not be able to afford to spend a lot on its accounting solutions, so it has made QuickBooks Online one of the most popular small business solutions both because it's easy to use and because it's more affordable.
The Cost of a Physical Bookkeeping Service vs Virtual Bookkeeping Service
For a small business, a physical bookkeeping service is often prohibitively expensive. A small business only needs basic bookkeeping tasks such as accounts payable. At the same time, small businesses don't want to hire internal accounting departments just to handle basic accounting services, accounts payable, bank statements, and other financial statements.
So, small businesses generally outsource their small business accounting to other virtual bookkeeping service tasks, such as payroll services.
This has led to an increase in virtual bookkeeper jobs. Virtual bookkeeper jobs can handle everything from payroll to cash flow reports for small businesses. And payroll services, in particular, tend to be important because they're so complex.
For a small business that needs basic bookkeeping, the most expensive option for basic bookkeeping is an internal accounting service.
An internal accounting service can handle payroll services, basic bookkeeping, business processes, financial reports, and business transactions, but they'll be very expensive.
From there, the next most expensive option is an outsourced traditional bookkeeper.
And the most affordable option is a virtual service that provides cloud-based accounting for business owners.
Accounting on the Cloud for Business Owners
Cloud-based virtual bookkeeping service is a more cost-effective, accessible way for business owners to outsource the management of their bank account, financial records, data entry, and QuickBooks live bookkeeping. Some cloud accounting solutions also manage tax filings for business owners but many don't.
The majority will simply produce business financial statements, finish reconciling business accounts, counsel the business client remotely, and forward them to tax specialists or a CPA when necessary.
Because virtual bookkeepers and virtual accountants have multiple clients and are able to work as virtual assistants (without brick-and-mortar overhead), they are able to provide financial documents, financial reports, and cash flow reports to small businesses and small business owners at lower costs. They can do everything from bill payments to producing a balance sheet, reconciling accounts, or performing data entry from wherever they are.
Find Out How Much a Virtual Accountant Costs Businesses Today
The long and the short of it is that a virtual bookkeeper will cost a business less than other accounting services, but because bookkeeping services are so broad, it's impossible to say how much the business will need to pay for outsourced bookkeeping services.
The advantage to a virtual bookkeeper is schedule flexibility, the fact that the costs are distributed among other clients, and the fact that they're entirely remote.
A company should inquire with a bookkeeping service regarding how much they will cost before making a decision. Include whether you want balance sheets and financial reports, whether you need support during tax season, and other services you need. If you are looking for an affordable online bookkeeping service, it is not always best to go with the most affordable bookkeeping services, but going with the best virtual bookkeeping services offered will likely be worth it.
Since bookkeepers vary in the services that they provide, the cost for a business will vary as well. Regardless, these virtual services (and online QuickBooks) can make the process of managing money, payroll, and other bookkeeping tasks much easier for small businesses. There are many advantages to making bookkeeping virtual.
Are you interested in finding out more about how virtual accountants operate? Do you want to know how an online bookkeeper can help you manage your business and your money? Contact us today to find out how businesses can better manage their income and expenses, get paid on time, and even improve their ability to finance themselves through virtual services. AccountingDepartment.com is here with the most advanced bookkeeping services for you.